The newspaper reports that ASA chairman Lord Chris Smith may use the ‘social responsibility’ rule from the Broadcasting Committee in Advertising Practice to clamp down on second charge lenders offering large loans secured on borrowers’ homes.
Lord Smith told the Independent: “I get irritated when I think consumers are being sold something in a very tempting way which is going to have huge financial and personal consequences for them. That to me is irresponsible advertising.”
The ASA chairman singled out adverts by Picture Financial Services, a lender that is now in liquidation. He says: “In their ad, there was a housewife surrounded by a busy household of kids getting ready for school and the husband was coming down the stairs and grabbing a slice of toast. Meanwhile she was on the phone saying, ‘So, a loan of £25,000? Yes, that will be all right. Thank you very much,’ and putting the phone down.”